REE Automotive Ltd. (NASDAQ:REE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, Germany, and internationally. With the latest financial year loss of US$112m and a trailing-twelve-month loss of US$100m, the US$23m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on REE Automotive's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

According to the 2 industry analysts covering REE Automotive, the consensus is that breakeven is near. They expect the company to post a final loss in 2027, before turning a profit of US$28m in 2028. So, the company is predicted to breakeven approximately 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

NasdaqCM:REE Earnings Per Share Growth December 31st 2025

We're not going to go through company-specific developments for REE Automotive given that this is a high-level summary, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for REE Automotive

One thing we would like to bring into light with REE Automotive is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in REE Automotive's case is 61%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on REE Automotive, so if you are interested in understanding the company at a deeper level, take a look at REE Automotive's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

Historical Track Record: What has REE Automotive's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on REE Automotive's board and the CEO’s background.

Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.